Anyone here ever use one, need one, or know of a good one?
What kind of "crap"?smoothrideronli said:I am not sure I if there is such a thing as a good high risk lender. The ones I had dealt with in the past including American General tend to want to sell you a bunch of other crap and include that in the monthly payment. Thank God my credit has gotten better.
Ding, ding, ding, that's me. Need to build my credit back up.BDA116 said:In general they are good to stay away from, and that is about it.
However, if you are in a situation where you need to build your credit so you don't have to use one in the future, make sure you go with one that at the very minimun reports to the three credit agencies, otherwise you are wasting money.
Paying them off quick is the best bet, but always give any credit line six months on the books minimum.
If you get the loan, check around with banks and credit unions after six months and you should at least get a better rate.
If you are just trying to rebuild the credit and nothing more (as in not needing the loan to buy something like a depreciating asset) then get a small loan (~$2000) and put it in a 6 month CD with your bank/CU. Make your payments each month, then after six months when the CD matures pay the loan off. Get a second loan at a better rate and do the same thing.ReaperAZ said:Ding, ding, ding, that's me. Need to build my credit back up.
Great suggestions BDA. Your right. I did the same thing also....... About a year after my American General ordeal. Perfect way for getting on the road to good credit. In my situation, I followed through with getting a small department store revolving charge. Used it very sparingly. And just progressed from there. This process of doing it on your own does take time though. When creditors make there quarterly reports to the Big 3.... Equifax, Experion, and Trans Union, the on time and consistance reports over the length of terms is what gives you, your "Good" financial ratings, the numbers that creditors look at. I hate suggesting things like this cause I dont know your level of self control, But something like a Capitol One card with a very low limit can also help. Just use it to pay for your fuel needs during the month. At the end of the month you need to make sure you had put the money away during that period so that you can pay the balance in full.I would suggest getting a dedicated fuel card, but it may also be a bit harder to obtain then Capitol One card I suggested. Create a separate savings account at your bank. Add $10.oo a week. Just dont take any out. This shows consistency. Mutiple reports from different creditors/financial institutions will help get you back in shape. Also check to make sure there are no bad marks or outstanding debts listed in your credit report that may be affecting things. If there are, START by taking care of these things first. Make sure all available information is correct.BDA116 said:If you are just trying to rebuild the credit and nothing more (as in not needing the loan to buy something like a depreciating asset) then get a small loan (~$2000) and put it in a 6 month CD with your bank/CU. Make your payments each month, then after six months when the CD matures pay the loan off. Get a second loan at a better rate and do the same thing.
Rebuilding your credit is all about timely payments and time on laon books.
If you need to buy something then still keep it as small as possible and check lenders every six months to refi at a better rate.
But the first option is the best. You won't be making any money off it, but you will be establishing yourself and keeping your losses in check.
I completely agree here.sheepofblue said:Check your score and get a report. See what is bad on the report and fix it. Most people assume a good loan is the way to fix your credit rating but there are other things that factor in. For instance debt to credit ratio, renting one place for time, longevity of job, etc. Before you deal with a shark I would suggest pulling the reports and seeing if you can get with a credit union to discuss ways to improve the score (DO NOT AGREE TO ANYTHING DURING THE MEETING, INFORMATIONAL ONLY). Always remember they are selling banking services so the answer is for you to buy those services. Take the advice given and think on it before doing anything.